Food price rises in shops drop sharply as inflation figures bring hope for families but retailers...
Food Prices Drop, Bringing Hope For Families
By Sean Poulter, Editor on Consumer Affairs at The Daily Mail
Last Updated: 12:20 AM (BST), August 29th, 2023
The increase in prices at stores is slowing down significantly, even though retailers across the country caution that the cost of living crisis is far from over.
According to the British Retail Consortium (BRC), the inflation rate for all purchases made in shops reduced from 8.4 percent in July to 6.9 percent in August.
The decline was caused by a drop in the inflation rate of food from 13.5 per cent to 11.5 per cent, but this rate remains unreasonably high for individuals who are finding it difficult to afford meals.
The price growth on non-food items, including TVs and fashion, stayed constant at 4.7 per cent, showing no alteration.
According to the BRC, the inflation rate could have been reduced if it weren't for the Government's decision to increase the cost of beverages starting from August 1, by implementing changes in alcohol duty.
(Stock Image) The hike in prices at retail stores is significantly decelerating despite retailers nationwide cautioning that the ongoing cost of living ordeal is far from over.
It cautioned that modifications in business rates mandated by the government might increase retailer expenses by £400 million starting next April. This operational challenge could hinder their ability to lower prices for consumers.
Additional obstacles to reducing costs arise from Russia's embargo on grain shipments from Ukraine in the Black Sea, as well as insufficient harvests across Europe and other regions caused by droughts and scorching weather.
Significant increases in the cost of olive oil and possible scarcities of durum wheat for pasta production have already been spotted, meanwhile elevated grain prices, which are essential for food and livestock feed, could impact retail prices.
Helen Dickinson, CEO of the British Retail Consortium (BRC), stated that shoppers received positive news in August as the rise in prices of goods in stores decreased to the lowest it has been since October 2022. This can be attributed to a decrease in the inflation of food prices, specifically for items like meat, potatoes, and certain cooking oils.
In non-food categories, the prices of toiletries and cosmetics became more affordable due to the decrease in costs of many essential elements.
(Pictured: Stock Photography) Additional obstacles to reducing expenses arise due to Russia's obstruction of grain shipments from Ukraine in the Black Sea and unfavorable crop yields throughout Europe and other regions.
The prices for clothing and shoes rose as retailers gradually ended their wide-ranging summer promotions.
She expressed concerns regarding challenges in exporting grain from Ukraine due to the intervention of Russia and unfavorable harvests, which could potentially hinder efforts to decrease inflation.
According to a study conducted by NielsenIQ's retail specialist, Mike Watkins, findings indicate that a significant majority of households, accounting for 60 percent, anticipate significant or moderate consequences due to the escalating expenses associated with daily living in the upcoming period.
